If I look so far, with the current escalation of the conflict, I think the impact on the real sector of the economy is still limited. If we want to grow, let’s say by 4.5-5%, I still have faith that we will succeed in 2024, I can’t yet
Jakarta (MidLand) – Deputy Director of the Institute for the Development of Economic and Financial Affairs (Indef) Eko Listiyanto said Indonesia’s economic growth could still reach 4.5-5% in 2024 despite the escalation of the conflict between Iran and Israel.
“If I look so far, with the current escalation of the conflict, I think the impact on the real sector of the economy is still limited. If we look at growth, let’s say 4.5 to 5%, I still have faith that in 2024 we can still grow,” he said in the webinar “The Impact of Political Economic Policies Amid the Iran-Israel War” in Jakarta on Monday.
Confidence in economic growth of 4.5 to 5 percent is based on Indonesia’s experience of successfully dealing with challenges caused by the war between Russia and Ukraine from 2022.
Read also: Kadin: Indonesian economy stands strong as it faces impact of Middle East crisis
At that time, the need for food, especially grain, faced obstacles on a global level, but on a macro level, the Indonesian economy was still able to grow.
“It is true that it is not accelerating (Indonesia’s economic growth), but simply surviving is still possible in the current situation of growing economic and geopolitical uncertainty,” Eko said.
He also suspected that the impact of the conflict between Iran and Israel would not have occurred if the government had managed to manage the consumption and production components, especially regarding industry as one of the sectors driving economic growth.
Read also: Analyst: Iran-Israel conflict has potential to disrupt Indonesia’s economic growth
However, aiming for economic growth of up to 7% is quite difficult because global conditions are not favorable and domestic conditions have not been able to support optimism about domestic economic fundamentals.
“Our economy is actually at a standstill towards the inland watch (a policy focused on the development of domestic industry), so it is still largely dominated by domestic activities. “We need to see that if the rupee continues to fluctuate, energy prices will also tend to increase, this will still have an impact on the domestic economy, it will erode our economic capacity,” said the deputy director of Indef.
Reporter: M. Baqir Idrus Alatas
Publisher: Nusarina Yuliastuti
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